Late Payment Lawsuit

OB/GYN News,  March 15, 2000  by Joyce Frieden

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The Medical Association of Georgia and the American Medical Association are suing Aetna U.S. Healthcare for not paying claims on time. The class action suit, filed last month in superior court in Atlanta, alleges that Aetna routinely delays claims payment and profits from the float. Georgia law requires physician claims to be paid within 15 days and charges the insurer an 18% penalty unless the plan can document why the claim wasn't paid.

Aetna disputed the physician groups' charges, noting that 90% of Atlanta-area claims processed in January were paid in less than 11 days. Most of the rest were either incomplete or needed further review, Aetna spokesman said.

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